Stock fact sheet · data as of
Red Violet, Inc. (RDVT): fair value, margin of safety and Wheel Score
Technology · Software - Application · United States · High Growth
Is RDVT undervalued?
RDVT closed at 75.96 on 16 Oct 2026, more than 30% above the GLS average fair value of 37.00. Only 1 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The 8 models disagree widely: EPV gives 12.89 while Payback Time gives 78.14. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RDVT under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for RDVT
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 12.95 | -83% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 14.37 | -81% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 44.14 | -42% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 17.64 | -77% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 71.05 | -6% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 44.84 | -41% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 78.14 | +3% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 12.89 | -83% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 2.83 | -96% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 84.33 | +11% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health RDVT scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.5 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.
Returns on capital are high - ROIC 12.7%, ROE 13.0%, ROA 11.7% - with debt at 0.03 times equity and a free-cash-flow yield of 2.3%.
Red Violet, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 12.7% |
|---|---|---|---|
| GLS Moat | 7.5 / 10 | ROE | 13.0% |
| Debt / equity | 0.03 | ROA | 11.7% |
| Free-cash-flow yield | 2.3% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 54: Fair
RDVT scores 54 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 16/20, Moat 11/15, Premium 20/20, Stability 7/20. Value (0/25) is where the points are missing.
Implied volatility is 57% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 1,587 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 128k shares a day on a market cap of $1.2B, with a beta of 1.78 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 7 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -105% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 11 / 15 | moat 7.5/10 | |
| Premium | 20 / 20 | implied volatility 57% | |
| Stability | 7 / 20 | 128k shares/day, $1.2B cap, beta 1.78 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (after the close), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Software - Application
The 12 companies below are the closest to Red Violet, Inc. by market cap within the Software - Application industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| GTM ZoomInfo Technologies Inc. | 4.08 | 45.93 | +91% | 45Weak | $1.2B |
| DFIN Donnelley Financial Solutions, Inc. | 51.37 | 45.61 | -13% | 59Fair | $1.3B |
| APPS Digital Turbine, Inc. | 10.54 | 6.04 | -75% | 33Weak | $1.3B |
| IBTA Ibotta, Inc. | 48.93 | 36.14 | -35% | 33Weak | $1.1B |
| WRD WeRide Inc. | 4.21 | - | - | 45Weak | $1.3B |
| PD PagerDuty, Inc. | 16.64 | 42.75 | +61% | 77Good | $1.3B |
| CXM Sprinklr, Inc. | 5.85 | 6.52 | +10% | 70Good | $1.4B |
| RSKD Riskified Ltd. | 8.09 | 9.80 | +17% | 45Weak | $1.1B |
| LZ LegalZoom.com, Inc. | 6.20 | 5.46 | -14% | 60Fair | $1.1B |
| LSPD Lightspeed Commerce Inc. | 10.89 | 7.64 | -42% | 45Weak | $1.4B |
| ALKT Alkami Technology, Inc. | 14.23 | 23.27 | +39% | 45Weak | $1.5B |
| WLTH Wealthfront Corporation | 10.45 | 8.89 | -18% | 45Weak | $1.6B |
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Start free See the Sunday ScanQuestions about RDVT
Is RDVT undervalued right now?
No: at 75.96 the stock trades 105% above the GLS average fair value of 37.00 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of RDVT and what does it mean?
RDVT scores 54 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RDVT?
37.00 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Red Violet, Inc. report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RDVT have listed options, and how liquid are they?
Yes. The nightly snapshot found 176 listed contracts with 1,587 open interest across all expiries and implied volatility of 57% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.